AIB introduced a 31-day notice business savings account with a flexible variable rate of 1.5% last Friday. Intending to cater to an “essential requirement” of business clientele, the product allows higher returns whilst permitting withdrawal upon 31 days’ notice. The bank’s research pointed out that a lack of deposit accounts was a major challenge for 90% of their business customers, resulting in lower returns on their investments.
Accessibility to cash-flow was identified as a primary hurdle, with a reluctance to tie up funds for longer durations. However, 73% of businesses disclosed that they might invest funds at one month’s notice, provided there was a definitive advantage, signifying customer interest in a 31-day notice scheme.
The new savings mechanism is accessible in 170 AIB branches nationwide, supported by deposit specialists for customer interactions and dedicated relationship managers for existing customers. This product is accessible to both new and existing clientele of AIB, with no restrictions on the minimum or maximum account balances and allowance for multiple fund additions as per their requirements.
The managing director of retail banking at AIB, Geraldine Casey, stated that this product was introduced to provide their business customers with additional options to capitalise on their surplus cash-flow. The 31-day notice deposit account allows customers to realise higher returns with an interest rate of 1.5%, while retaining flexibility to access their funds upon 31 days’ notice, crucial in an unpredictable operational setting.
Additionally, AIB reduced the interest rate on its fixed rate green mortgage products and four-year fixed-rate mortgage for loans exceeding €250,000 by a quarter of a percentage point last Thursday. This decision, following the ECB’s rate cut this month, lowered the interest rate on the green mortgage to 3.2% and the four-year fixed rate to 3.7%.
Green mortgages are suitable for properties with an energy rating between A1 and B3, as well as for self-built properties, provided there are over five years remaining on the mortgage term. Availability for these rates will commence on September 27th, catering to both current and prospective customers.